WARNING Please note I have not verified the information contained in this thread so PLEASE DO YOUR OWN RESEARCH

Spectrum Interactive plc is pleased to announce a new exclusive 3 year agreement to supply WiFi services to 86 Greene King hotels and pubs across the UK..11 Jan 08.

Spectrum are transforming from a payphone operation to a interactive one, although the better located payphones (approx. 5,000) will remain profitable for several years to come.

Recently they have secured long term contracts to 2011 with BAA & 2012/13 with Birmingham International for interactive services and also with Travel Lodge for Wi-fi until 2014. Furthermore they have changed strategy from one-off revenue on Wi-fi to reccurring revenue.

They are rapidly removing loss making payphones,1500 have already been removed with more to follow. Also they are divesting from loss making Germany, and indeed have written off 4.7m in last accounts relating to that.

Capex went up from 0.9m first half to 2m second half, so interactive is growing very fast.....forecast is for 700,000 profit and 2p eps, for 2008, but the brokers have not been very accurate in the past! However this time round Spectrum have anounced at thier AGM that trading is above expectations in the first four months, which gives some hope that the forecast will be met or indeed beaten.

More recently Spectrum have won a contract for Digital Services with BAA and cleverly they have 'installed' their casino offering in the airports, with notable advertising giving free access to those who play, the Spectrum Casino site links suggest they may get 30 pounds for each sign up, just 50,000 customers would be 1.5m revenue, (one would think mostly profit) split between BAA and Spectrum, not forgeting the advertising revenue, which is another bonus. Spectrum will also have 40,000 rooms on Wi-fi soon too for the casino offering, which could be even more lucrative.

Furthermore Spectrum have recently tied up a pub/hotel chain with Wi-fi until 2011, It will be hoped that more of these will follow the exclusive contract with Greene King.

When performing as they should, Spectrum should be making 10% of turnover on the bottom line, hence 20m turnover should make 2m GBP pre-tax for this 4m market cap. (In 2005 Spectrum acheived 2.4m profit on 16m turnover then having circa 1m interest to pay, 600k more than now)

Update from their AGM statement 26th November

"I am pleased to report that trading in the first four months of the 2007-8 financial year has been above market expectations."

"The outlook for the remainder of the financial year is encouraging. As the dependency on payphone income further reduces we expect income from interactive services to become predominant and this consistently growing business is demonstrating healthy gross margins and profitability."

Distressed seller with Winterfloods ?

They are 5.25p offer when all the other mm's are 5-7p

Yep, 550k dumped at 4.5p with Wins and they are selling it on for 5.15p for
a nice turn, now if nothing is wrong with the company which is always the
risk side of it assuming the seller just needed the money then there's a 10-20%
possible gain on the table if wins can clear the remaining 400k because there
was 150k of buys after that trade including my small buy, kept it small because
i wanted to see the size of that sale first, we shall see.

LIAR

Nice acquisition today.

This actually looks very cheap now.

They are quite profitable albeit they have been dropping in touch times but
they do generate cash and debt has been dropping well.

Only reason no movement and will remain no movement until wins sell that
remaining 400k of the large sale on Friday.

Easily get back above 7p when it does, that 5.25p looks great value to me
and the next offer remains 7p on L2.